In a significant escalation of trade tensions, Trump has announced new tariffs of up to 40% on a growing number of countries, specifically targeting key allies Japan and South Korea with a 25% levy starting August 1. Trump sent official letters detailing these tariff rates to 14 countries and hinted at potential increases for more nations, with particular focus on Asian economies. Market reactions have been negative, with major indices seeing declines as investors grapple with the ramifications of these trade policies. As negotiations stall, Trump continues to apply pressure, stating that reciprocal tariffs are a possibility for those unwilling to adjust trade agreements.